S&P upgrades Mosenergo

S&P said it raised its long-term issuer credit rating on Mosenergo PJSC to BBB- from BB+.

The outlook is stable.

The agency said the upgrade reflects a view that Mosenergo will maintain solid credit metrics and a prudent financial policy.

The rating is underpinned by Mosenergo's stand-alone performance rather than by any group or government support, S&P said.

“Mosenergo has been reporting improving credit metrics since 2015, with funds from operations (FFO) to debt increasing to more than 100% in 2017 from 47%,” the agency said in a news release.

“This was due to gradual completion of its large investment program under the capacity supply agreement (CSA) framework and due to extra cash flows from capacity revenues, which enabled the company to gradually reduce its outstanding debt.”

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